Organized Crime on Labor Racketeering
Overview:
Organized Crime on Labor Racketeering. What are the three basic forms of labor racketeering? Labor racketeering is the illegal, violent, dishonest infiltration, control, and exploitation of a union for personal gain. However, there are three primary forms of racketeering: strike insurance, sweetheart deal, and siphoning of union funds. Also the strike insurance is where the union threatens a strike, and the business makes payments to ensure a constant supply of workers. A sweetheart deal is the management pays the labor representative for contract provisions that cannot be obtaine-d through independent negotiation.
Analysis:
An employer may be persuade-d to have corrupt dealings with labor unions because “he may hope that through a pay-ment to the union officers he can persuade them not to organize his shop, thereby allowing for pay-ment of less than the going union wage.” The American Mafia and its forerunner organizations are distinguished from later types of organized crime by labor and business racketeering: Italian, Jewish, and Irish organized crime gangs contributed to defining American economic life.
Abadinsky, H. (2017). Organized crime. Cengage Learning US.
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